The "No - Markets Fail Often" Camp Argues That in a Recessionary

question 110

Multiple Choice

The "No - Markets Fail Often" camp argues that in a recessionary gap, all of the following will happen except,

• A) workers resist wage cuts.
• B) employers resist wage cuts.
• C) falling interest rates increase business investment.
• D) falling output creates pessimistic expectations that decrease business investment.
• E) destabilizing demand shocks from R.O.W.